Open web payments

Open Stack For Open Web Payments
Praveen Alavilli
Ray Tanaka

Agenda
Online Payments
State of the Online Payments
Payment Networks
Features and Functionality
A Case for Open Web Payments
Open Stack for Open Web Payments
Next steps / Call for Action

Payments – a look back !
EFT1970s
PayPal 1998
Barter
100,000BC – 3,000BC
Commodity
3,000BC – 650BC
Cash
650BC - Now
Credit
1950 - Now
Payment Gateways
1995
eCommerce
1981 (1984)

There are many players…

The Result: Fragmentation

Payment Networks
Credit/Debit Card Networks
ACH
some gateway

Essential components of Online Payments
Authentication – Who are you?
Authorization – How much do you want to charge?
Payment Instrument – What are you using to pay?

Motivation
Reduce Friction
Interoperability across multiple payment platforms
PCI Compliance

Open Web Payments
Consistency APIs across platforms
Single model for authorization, payments and transactions
Support for real and virtual currencies
Single, extensible document model

What we’re not covering (for now)
Payment data portability (Merchant + Consumer)
Client, user and receiver account management
Direct integration with financial institutions

Transactions AS THE CORE

The closest sibling on the web !

Feeds – web resources

Feeds – A closer Look
<entry>
<id>tag:blogger.com,1999:blog-754260340057137512.post-2123024611142172293</id>
<published>2010-03-11T13:46:00.001-05:00</published>
<updated>2010-03-11T13:46:50.788-05:00</updated>
<category scheme='http://www.blogger.com/atom/ns#' term='wallet'/>
<title type='text'>Fueling the Wallet.Next</title>
<content type='html'>……</content>
<link rel='alternate' type='text/html' href='http://whyidentity.blogspot.com/2010/03/fueling-walletnext.html' title='Fueling the Wallet.Next'/>
<link rel='replies' type='text/html' href='https://www.blogger.com/comment.g?blogID=754260340057137512&postID=2123024611142172293' title='0 Comments'/>
<author>
<name>Praveen</name>
<uri>http://www.blogger.com/profile/10778095038892167017</uri>
<email>noreply@blogger.com</email>
</author>
</entry>

Transactions – A closer look
Date
Sender – Payer, Buyer, Customer
Receiver - Friend, Merchant, Seller, Some Service Provider)
Type of Payment – instant, subscription, pre-pay, post-pay, refund, agreement to pay in future
Reason for payment – purchase, personal, gift, etc.
Category – Restaurant, Merchandise, Travel, etc.
Unique identifier
Amount and Currency
Status
Application/Client– Web Site, Mobile Application, etc.

Mapping Transaction ATOM Entry

Open Web Payments Extensions
Filling in the missing pieces in the puzzle

ATOM
An XML-based Web Content and metadata syndication format

POCO
Simple, Portable and Standard Contact schema
Shipping & Billing Address -- poco:address

OAUth 2.0
Request (Client) Authentication
End User Authorization (Transaction Approval)
Little sketchy !

ATOMPub
Application level protocol for publishing and editing web resources

So what’s our open stack ?
Transaction
History
Application
Consumer
Application
Merchant
Application
PoCo
Open Web Payment
OpenSearch
Open
Web
Payments
Stack
Atom
AtomPub
OAuth
host-meta/WebFinger
Payments Provider

How does this work ?

Transactions represented by an Entry
<entry>
<id> -unique-transaction-id- </id>
<title type=“text”> -short desc of transaction- </title>
<published> -transaction creation date- </published>
<author>
<name>-name of the app-</name>
<uri>-app url-</uri>
<id>-unique-app-identifier-</id>
<OWP:consumer_id>-id-</OWP:consumer_id>
<OWP:consumer_transaction_id>-txn-id-</OWP:consumer_transaction_id>
</author>
<category scheme=“-iri-” term=“-category-” label=“-label-”/>
<link rel=“alternate” type=“text/html” href=“-url-to-receipt-”>
<content type=“xhtml”>-detailed-desc-</content>
<OWP:transaction>…</OWP:transaction>
</entry>

OWP:transaction
<OWP:action></OWP:action>
<OWP:status-type></OWP:status-type>
<OWP:start-date/>
<OWP:end-date/>
<OWP:entity>
<name/><uri/><email/><id/>
<OWP:entity-type></OWP:entity-type>
<OWP:amount currency=“”></OWP:amount>
<OWP:fundingType></OWP:fundingType>
<OWP:securePin></OWP:securePin>
<OWP:refTransactionId></OWP:refTransactionId>
<OWP:payment-type></OWP:payment-type>
<OWP:status-type></OWP:status-type>
<poco:address/>
</OWP:entity>

OWP:transaction
OWP:action:
http:/owp-api.net/schema/1.0/verbs/Pay
http://owp-api.net/schema/1.0/verbs/PrePay
http://owp-api.net/schema/1.0/verbs/PostPay
http://owp-api.net/schema/1.0/verbs/PrePayAgreement
http://owp-api.net/schema/1.0/verbs/PostPayAgreement
http://owp-api.net/schema/1.0/verbs/DelegatedPaymentAgreement
http://owp-api.net/schema/1.0/verbs/HoldFunds
OWP:entity-type:
http://owp-api.net/schema/1.0/entity-types/Sender
http://owp-api.net/schema/1.0/entity-types/Receiver
http://owp-api.net/schema/1.0/entity-types/PrimaryReceiver
http://owp-api.net/schema/1.0/entity-types/SecondaryReceiver
OWP:payment-type:http://owp-api.net/schema/1.0/payment-types/Personal
http://owp-api.net/schema/1.0/payment-types/Goods
http://owp-api.net/schema/1.0/payment-types/Services
http://owp-api.net/schema/1.0/payment-types/Donations
OWP:funding-type:
http://owp-api.net/schema/1.0/funding-types/Bank
http://owp-api.net/schema/1.0/funding-types/Card
http://owp-api.net/schema/1.0/funding-types/Gold
OWP:status-type:http://owp-api.net/schema/1.0/status-types/Created
http://owp-api.net/schema/1.0/status-types/Pending
http://owp-api.net/schema/1.0/status-types/Complete
http://owp-api.net/schema/1.0/status-types/Canceled

http://owp-api.net/schema/1.0/actions/PrePayAgreementhttp://owp-api.net/schema/1.0/actions/PostPayAgreement
Prior agreement between Sender and Receiver
PrePay Agreement results in money movement
PostPay Agreement results in no money movement
Requires end user authorization

http://owp-api.net/schema/1.0/actions/PrePayhttp://owp-api.net/schema/1.0/actions/PostPay
PrePay is for transaction recording purposes – no money movement
PostPay is for merchant credit functionality – no money movement

http://owp-api.net/schema/1.0/actions/DelegatedPaymentAgreement
Delegate access to the application to make Payments on behalf of the user
Requires end user authorization.
Allows to set max amount allowed, max number of payments, frequency, start/end dates, and receivers.

http://owp-api.net/schema/1.0/actions/HoldFunds
No money movement but funds are held in for a specific receiver
Requires end user authorization
Allows to set amount, and expiry.

http://owp-api.net/schema/1.0/actions/Pay
For money movement from sender to receiver.
In most cases requires end user authorization.
No explicit user authorization required when used with a TransactionId for previously held funds or Delegated Payment access or when sender is same as Client

Authentication and Authorization
OAuth 2.0 ?
2-legged or 3-legged
Need Access Token ?
How to do dynamic user approvals ?
Implicit and User Federations

Discovery
https://service.provider.com/.well-known/host-meta
<?xml version='1.0' encoding='UTF-8'?>
<XRD xmlns='http://docs.oasis-open.org/ns/xri/xrd-1.0'
xmlns:hm='http://host-meta.net/ns/1.0'>

<hm:Host>service.provider.com</hm:Host>

<Link rel='http://owp-api.net/1.0/provider'
href='http://service.provider/openpayments'>
</XRD>

Putting this all together – a grocery app
<entry>
<id>https://paymentsservice.com/owp/transaction/id/12345678</id>
<published>2010-07-15T01:46:00.001-05:00</published> <updated>2010-07-14T08:00:50.788-05:00</updated>
<category scheme='http://openpayment.org/atom/ns#' term='groceries' label="Groceries"/>
<category scheme='http://www.blogger.com/atom/ns#' term='store' lavel="Safeway"/>
<title type='text'>Groceries from Safeway</title>
<content type='html'>
<ul><li>2% Milk</li><li>2 Gallons Water</li><li>2lb Tomatos</li></ul>
</content>
<link rel='alternate' type='text/html' href='http://www.safeway.com/order-status' title='Safeway online Store'/>
<author>
<name>Your Grocery App</name>
<uri>http://your-grocery-app.com</uri>
<email>support@yourgroceryapp.com</email>
<OWP:consumer_id>api-caller:1234</OWP:consumer_id>
</author>

Putting this all together – a grocery app
<OWP:transaction>
<OWP:action>http://owp-api.net/schema/1.0/object-types/Pay</OWP:action>
<OWP:entity>
<OWP:entity-type>http://owp-api.net/schema/1.0/entity-types/Sender</OWP:entity-type>
<name>Praveen Alavilli</name><uri>https://me.paypal.com/id/1234567</uri><email>praveen@x.com</email>
<OWP:funding-type>http://owp-api.net/schema/1.0/funding-types/Bank</OWP:funding-type>
<OWP:funding-type>http://owp-api.net/schema/1.0/funding-types/CreditCard</OWP:funding-type>
<OWP:funding-type>http://owp-api.net/schema/1.0/funding-types/DebitCard</OWP:funding-type>
</OWP:entity>
<OWP:entity>
<OWP:entity-type>http://owp-api.net/schema/1.0/entity-types/Receiver</OWP:entity-type>
<name>Safeway Store</name><uri>https://biz.paypal.com/id/7654321</uri><email>support@safeway.com</email>
<OWP:amount currency="USD">25.50</OWP:amount>
<OWP:payment-type>http://owp-api.net/schema/1.0/payment-types/Goods</OWP:payment-type>
</OWP:entity>
<OWP:entity>
<name>Your Grocery App</name><uri>https://biz.paypal.com/id/432156</uri><email>support@yourgroceryapp.com</email>
<OWP:amount currency="USD">2.00</OWP:amount>
<OWP:payment-type>http://owp-api.net/schema/1.0/payment-types/Services</OWP:payment-type>
</OWP:entity>
</OWP:transaction>
</entry>

Digital Goods app – using Pre-Pay
<entry>
<id>https://paymentsservice.com/owp/tranaction/id/2123024611142172293</id>
<category scheme='http://owp-api.net/atom/ns#' term=’coins' label=”Coinsville Coins"/>
<title type='text'>Buying coins on Coinsville</title>
<content type='html’>PrePay for Coinsville</content>
<link rel='alternate' type='text/html' href='http://coinsville.com/account' title=’Coinsville Account Page'/>
<author>
<name>Digital Goods App</name><uri>http://digitalgoodsapp.com</uri>
<email>support@digitalgoodsapp.com</email>
</author>
<OWP:transaction>
<OWP:action>http://owp-api.net/schema/1.0/object-types/PrePayAgreement</OWP:action>
<OWP:entity>
<OWP:funding-type>http://owp-api.net/schema/1.0/funding-types/Gold</OWP:funding-type>
<OWP:amount currency=”bar">2</OWP:amount>
</OWP:entity>
</OWP:transaction>
</entry>

Digital Goods app – recording payment
<entry>
<id>https://paymentsservice.com/owp/tranaction/id/45402461154323434234</id>
<category scheme='http://owp-api.net/atom/ns#' term=’coins' label=”Coinsville Coins"/>
<title type='text'>Purchase digital sword</title>
<content type='html’>Blazing sword</content>
<link rel='alternate' type='text/html' href='http://coinsville.com/order' title=’Coinsville Order Portal'/>
<author>
<name>Digital Goods App</name><uri>http://digitalgoodsapp.com</uri>
<email>support@digitalgoodsapp.com</email>
</author>
<OWP:transaction>
<OWP:action>http://owp-api.net/schema/1.0/object-types/Pay</OWP:action>
<OWP:entity>
<OWP:refTransactionId>https://paymentsservice.com/owp/tranaction/id/2123024611142172293</OWP:refTransactionId>
</OWP:entity>
<OWP:entity>
<name>Digital Sword Seller</name><uri>https://biz.paymentprovider.com/id/9832434</uri><email>support@sword.com</email>
<OWP:amount currency=”bars”>0.25</OWP:amount>
<OWP:payment-type>http://owp-api.net/schema/1.0/payment-types/Services</OWP:payment-type>
</OWP:entity>
</OWP:transaction>
</entry>

Next Steps
Join the community and help in driving the spec
OWP-API@googlegroups.com
http://groups.google.com/group/owp-api
Validate the document model
Explore more use cases
Sample implementations
Virtual Currency Provider
Payment Portability

Q & A ?
Contact us: @ppalavilli & @rtanaka
http://groups.google.com/group/owp-api

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Open web payments

by Praveen Alavilli on Jul 21, 2010

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Open web payments — Presentation Transcript